Build your research framework

Learn earnings options

Understand the inputs behind the research. Start with the concepts, then inspect the evidence.

What is implied volatility?

Read option prices as a measure of uncertainty, then compare volatility at the same point before earnings.

Understand why implied volatility can fall after an earnings announcement and why that does not guarantee a profitable position.

Understand the ATM straddle method, its boundaries, and the evidence needed to interpret an implied earnings move.

Compare priced uncertainty with observed earnings outcomes without confusing a small historical sample with a forecast.

Compare implied volatility across expirations while accounting for which options contain the earnings event.

Align observations to earnings time to separate normal volatility build-up from unusual option pricing.